This page has been archived and commenting is disabled.
Rates Rise By The Tiniest Amount, And This Happens...
Day after day we are told, just wait for rates to rise ("which they 'have' to because economic growth is so strong") and stocks will take off into the next leg of exuberance... why else would the Fed end QE and start more hawkish discussions? (aside from the fact they truly fear broken repo, exuberant markets, and lethargic politicians). Be careful what you wish for... Mortgage rates rose last week, back to the same level they have been at for 3-months, and refinancing activity (adjusted for holidays) collapsed to its lowest since 2008... and home purchase activity tumble back towards 20-year lows.
Rates up... mortgage activity collapses...
to its worst since 2008...
Furthermore, despite record highs in US equity prices - which must mean the economy and confidence is soaring, right? Home purchase activity plunged back to near 20-year lows...
Does this in any way look like a recovering housing market?
Charts: Bloomberg
»
- 12333 reads
- Printer-friendly version
- Send to friend
- advertisements -
Market Watch pompom boys are already trying to excuse it away.
http://blogs.marketwatch.com/capitolreport/2014/09/10/mortgage-gauge-hit...
With recoveries like this,.. who needs to work ever again. Gonna be rich and do NOTHING...
This can not stand! Bring out the negative interest rate leviathan!
But how about the new iWatch!!
And... U2's new album is FREE on iTunes!
Oh look.. a squirrel!
If lowering rates didn't stimulate housing, then it would seem rather logical to assume that raising rates would do the opposite. No?
lol
/s
A terminal economic system won't be repaired until it is totally scrapped. Housing is dead. The nice government men are totally blind that this pig has died.
Traditional housing has died.
There is still a RE market for Chinese cash, CIA Afgan heroin profits, MIC weapons profits, Wall Street fraud 3rd & 4th homes as well as a new entrant ISIS US safe houses where CIA / Mossad false flag events can be cooked up.
From your local realtor: "There's never been a better time to purchase a home with black market fiat than now" TM
Tree weezles are cool!
Rasis.
I just want to know why Gavin Friday and Guggi are still friends with Bono, boidichín fuail.
Thee NIRP Kraken standeth at the gates before us!!!!!!!!!!!!!!!!!!!!!!!
If you can afford it, just move to a location that offers a great lifestyle for 1/4 the price. Sure you might not be able to get your daily starbuxx, but that's the whole idea. Think free and rural... and not Ferguson Mo.
After seeing Vice Dispatches of the situation in Ukraine it seems as if the rural locations are just as exposed to war as are the urban centers. I am starting to think the key is not to run, per se, but to resist on every front that comes about in one's daily life. The opportunities to do so are pretty endless. Change, as they say, begins with you.
The best thing you can do to start is to reorganize yourself as an independent contractor, and minimize the amount of tax you send to ALL governments that touch you. Unless you live in a high-tax jurisdiction such as CA or NY, in which case the best thing you can do is GET OUT AS FAST AS YOU CAN.
There are "Fergusons" in every city, which BTW, used to be a civilized, vibrant and safe area just 30 years ago when it was dominated by a preponderance white, nuclear families.
Might want to simply avoid a 5 mile radius centered on ANY Martin Luther King Blvd.
"There are "Fergusons" in every city, which BTW, used to be a civilized, vibrant and safe area just 30 years ago when it was dominated by a preponderance white, nuclear families.
Might want to simply avoid a 5 mile radius centered on ANY Martin Luther King Blvd."
Let me fix this for you. Add 100 miles to your 5 mile radius. Same goes for any avenue named La Raza and/or Che Guevara and/or MS 13.
You forgot Cesar Chavez...
True, but the Fergusons of Detroit, Cleveland, Chicago, Memphis, Philly, Old Orleans, Miami, LA, Atlanta, Ummmmm, St. Louis... are all soooooooo much worse than say, Elko NV, Bend OR, Naples FL, Ashville NC, Portland ME, Eureka CA,...
You picking up what I'm dropping?
Antennae vibrating......
BTW.....+1000 just for Sleestak
Green Shoots! Just like McDonalds, "I'm lovin' it!"
I wonder if "adding a hopey-dopey spin on bad news headlines" is part of the job description.
Don't forget, you work for the "corporation", and the CORPORATION SAYS. You... well you don't say!
"Second, school recently started for many students (yay!), and parents may have simply been too busy purchasing new backpacks and getting back into the dropoff-pickup groove to push ahead with a home-loan application."
Are you fucking kidding me? Is the writer this dumb, or does he believe that readers are?
It would appear that Ruth is a simpleton. Of course shopping for a backpack could take hours, if not days, and there is no way you would take your kid to the bank to drop off that application for a home loan.
Will that old dude Yellen have the balls to raise rates. I say no, otherwise what is left of housing will get lost in a big black hole!
I hear that Ebola will free up more housing inventory soon. Just what I'm hearin'
Yes! Mission accomplished!
recovery
Is this why the dow is headed back green?
10 Yr auction.
Europe closing.
Or maybe because it's a day ending in Y.
Or the weather.
Or the sun god shining on us most favorably from it's highest point in the sky this time of day.
Or Yellen had a good bowel movement this morning.
I'll go with the bowel mmovement...
"Is this why the dow is headed back green?"
Yep....it's called forward guidance. The trial interest rate rise has shown its hand.....QEternity is back on....or at least delayed by another 6 months. Party on.....all in the pool.
Things are bad, even Hitler can't get a mortgage:
http://www.youtube.com/watch?v=WywDQkxXf8Y
Mortgage rates are not important. Government liabilities are however.
Amazing how tight the range of rates can restrict mortgagage activty. Can't see this ending well at all unless the US is willing to "reset" it's financial system back to "pre-Fed". But I feel no one has the balls to do so as it means yet another huge recession and even worse downturn in the housing market.
Oh well, we continue the charade....
If we would get rid of the FED, that would not please the owners.
pods
Too the moon!
Are we seeing how everytime this happens, higher lows are put in bonds??
suckers!
Behavioral convexity bitchez!
NIRP here we come!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
or very close to it.
Deleveraging doesn't seem to be an option for TPTB
There can be no strong housing market without a strong jobs market.
The fact is that unemployed and underemployed people cannot afford to buy homes.
let alone qualify.. sub 620 FICOs don't get you very far..
"Does this in any way look like a recovering housing market?"
Yes!
but only if you turn chart upside down
And stawks are now green.
I love it!
Maybe
Borrowers were so busy taking out student & auto loans that they just didn't have time to mess with a mortgage.
/s/
I read that homes have more than recovered in California, Washington, South Florida and others. Many areas in Cali ahead of 2007 prices. Demand huge, though not sure how much of this is normal retail customer and not drug money laundering, international money and investment house/banks.. What a great time to be selling drugs. So easy to launder through real estate now. Walk into closing with a million cash (no questions asked about the source), get the title and put it up for sale in a year.
Question I have is with all this NIRP and ZIRP who is buying everyones sovereign debt? What is the point, it pays nothing and loaded with risk though I guess the US could technically steal retirements to pay.
The largest drug dealer by far is your Government. Nothing major happens in the drug world without the Govs. ok. Central banks are laundering the money, and buying all sovereign dept.
http://youtu.be/Oik6dXm-0l0 what we got here is failure to communicate....
Sorry, becoming a rentership nation. Foreign and PE buyers only and they're done. They have jobs and access to free money. Accept the way things are. Resistance is futile. Join them or, or. or ...
Latest read on mortgage applications is for the holiday shortened week that included Labor Day, right?
I like acorn weezles.
In my area (central Virginia), prices are about what they were at the peak of the bubble in 2006, yet 85% of the houses listed on Zillow are vacant. Of the total listed on Zillow, half are foreclosures. As I drive around neighborhoods checking out listings, there are many vacant homes that aren't listed anywhere, but still sit empty.
The supply of existing homes is huge, the prices haven't dropped, and realtors push the hell out of financing options and affordable payments (due to low interest). Try negotiating the price down and they cop a bigtime attitude.
Feds want the prices high. A drop in prices means reduced property taxes, which means state/local pension contributions drop, putting the burden on the Fed Govt.
One would think the oversupply would force prices to drop, but I don't think it'll happen. I think the dollar's dropping at the same rate real estate values decline, so the price appears to stay the same (even though the value of both has declined).
Time to leave the USSA.
Bring back Barney Frank. the mighty butt-weasel would know what to do....
That brings new meaning to the term CYA, cover your ass.